REVENUE REGULATIONS NO.

8-2009 issued on October 23, 2009 amends further

Sections 2.57.2 and 2.57.3 of Revenue Regulations (RR) No. 2-98, as amended, subjecting to
Creditable Withholding Tax the income payments made by political parties and candidates of
local and national elections of all their campaign expenditures and income payments made by
an individual or juridical person forming part of their campaign contributions to candidates
of local and national elections and to political parties.
Section 2.57.2 of RR No. 2-98, as amended, is further amended, to read as follows:
“Sec.2.57.2 Income payments subject to creditable tax and rates
prescribed thereon. – Except as herein otherwise provided, there shall be
withheld a creditable income tax at the rates herein specified for each class
of payee from the following items of income payments to persons residing
in the Philippines:
xxx xxx xxx
“(W) Income payments made by political parties and candidates of
local and national elections of all their campaign expenditures, and income
payments made by individuals or juridical persons for their purchases of
goods and services intended to be given as campaign contribution to
political parties and candidates - Five percent (5%).”

Section 2.57.3 of RR No. 2-98, as amended, is further amended, to read as follows:

“Sec.2.57.3 Persons required to deduct and withhold – The
following persons are hereby constituted as withholding agents for
purposes of the creditable tax required to be withheld on income
payments enumerated in Section 2.57.2:
xxx xxx xxx
“(D) All individuals, juridical persons and political parties, with
respect to their income payments made as campaign expenditures and/or
purchase of goods and services intended as campaign contributions.”

These Regulations are promulgated to ensure that the purchases of goods and services
for the campaign and election activities of the candidates and their contributors and
supporters shall be subject to withholding of tax.